Major fragrance and Flavour group Firmenich is progressing its plans to merge with health-based product business DSM to form a new key partnership in nutrition, beauty and wellbeing, writes Neill Barston.
The move is set to be completed by the first half of 2023, with development of new plant-focused foods including snacks applications to form part of the newly devised combined company.
It will bring together Swiss-based Firmenich’s perfumery and taste businesses, its science platforms and associated co-creation capabilities with DSM’s health and nutrition portfolio and renowned scientific expertise.
DSM-Firmenich will have four high-performing and complementary businesses and said it will be able to “better anticipate and to address the needs of today’s conscious consumers who prioritise sustainability, health and well-being”.
In addition, the merger of DSM-Firmenich is also targeting the acceleration of innovation for the industry and generate new growth opportunities for the new company’s combined customers. Specifically for the food and drink industries, the companies said a new global-scale partner can serve the food and beverage industry, combining DSM’s Food & Beverage and Firmenich’s Taste & Beyond businesses.
The combined company’s extensive global footprint will provide customers with access to an unprecedented network of R&D, creation and application capabilities, informed by local consumer preferences, across regional and local hubs around the world.
Thomas Leysen, chairman of the DSM supervisory board, said DSM-Firmenich will bring together “leading creativity and cutting-edge science and innovation” and believes this is a merger which is in the interest of all stakeholders.
Patrick Firmenich, chairman of Firmenich, commented: “The combination of DSM and Firmenich is “transformational”, and brings together two culturally aligned and iconic businesses.
Geraldine Matchett and Dimitri de Vreeze, co-CEOs of DSM, commented: “Together DSM-Firmenich will enjoy complementary capabilities, including one of the largest creation communities in the industry, enabling us to unlock new opportunities for customers as well as position us to deliver enhanced long-term growth and shareholder value, sustainably. By coming together, we will establish a company where anyone, anywhere in the world, wishing to make a positive impact should aspire to work.”
Gilbert Ghostine, CEO of Firmenich, added: “I am excited that the legacy of Firmenich will shape a new industry leader that will innovate for a better world.”
For Food & Beverage / Taste & Beyond, with combined revenues of €2.7bn, the merger will form a global-scale partner to the food and beverage industry with extensive capabilities in taste, nutrition and functionality to provide nutritious and sustainable products.
The new business will lead the diet transformation in creating healthier, accessible food and beverages with more natural and sustainable ingredients, including in naturals and clean label products; in plant-based foods; and in supporting a superior taste experience whilst enhancing food’s nutritional profile (for example with vitamins, probiotics, and lipids and reducing sugar and salt)
For Health, Nutrition & Care, with revenues of €2.2bn, DSM-Firmemich will continue to provide customised solutions that support the health of people at every life stage. It will aim to keep the world’s growing population healthy through a broad portfolio of sustainable, science-backed innovative solutions, addressing consumers’ health and lifestyle needs, for customers in the dietary supplements, early-life nutrition, pharmaceuticals, medical nutrition, nutrition improvement for the under-nourished, and medical devices markets.